Average Cost of Car Insurance in Tennessee in 2025

Across all demographics, the average cost of car insurance in Tennessee is $1,716 a year, which breaks down to about $143 a month, assuming you opt for full coverage car insurance.

The national average for full coverage car insurance in the United States is $2,399 per year, or about $200 per month. The average cost of full coverage car insurance in Tennessee is therefore about 28 percent cheaper than the national average.

By Age

Like most states, teen drivers face the highest costs for car insurance in Tennessee. The average teenager in Tennessee pays $5,811 annually for car insurance, compared to an average of $1,716 for drivers in their 30s. On the flip side, senior drivers in Tennessee have rates lower than the state average, at an average of $1,536 per year.

By Gender

Men pay a little more than women for car insurance in Tennessee, which is par for the course compared to other states that allow insurers to use gender as a factor in determining premiums. The difference is biggest for teen drivers, as young men are statistically more likely to be involved in accidents than young women..

By Coverage Level

One way to save money on car insurance is by opting for minimum coverage instead of full coverage. In Tennessee, doing so will save you around $1,100 a year, with minimum coverage costing $587 annually on average, compared to the full coverage option of $1,716. However, minimum coverage may not offer enough protection. We often recommend getting the full coverage to be safe, but this decision varies based on your personal situation.

By Credit Score

One area that can have a heavy impact on car insurance costs is your credit score. Individuals with poor credit scores can expect to pay almost $2,000 more for car insurance in Tennessee per year than those with good credit.

By Driving History

Similarly, expect higher car insurance costs if you’ve had a speeding ticket, at-fault accident, or DUI. Individuals with a DUI pay more than $1,000 more per year on average than a driver with a clean record.

Looking for cheap car insurance in Tennessee? These companies have the lowest rates for different demographics.

Much like other states, some of the best ways to save money on car insurance in Tennessee are to explore specific discounts — such as defensive driver bonuses — as well as maintaining a clean driving record, and increasing your deductible.

Also, it is always important to compare quotes across multiple companies and policies to find the best Tennessee auto insurer for you and the cheapest rate. Never settle on your first option.

Finally, if you’re still struggling with auto insurance bills, as a last resort, you might consider trading in your vehicle. Trucks, luxury and sports cars, and other high-value vehicles are more expensive to insure than used cars, minivans, and hatchbacks.

Tennessee’s minimum coverage requirements include three essential components, sometimes referred to as 25/50/25:

• $25,000 for each bodily injury or death per accident
• $50,000 for total bodily injury or death accident
• $25,000 property damage per accident¹

This coverage is similar to the minimum requirements in many other states. For what it’s worth, we still recommend opting for higher liability limits.

Alternatively, you can post a bond or deposit cash to the Department of Revenue totalling $65,000 instead of paying for liability coverage. Opting for minimum coverage, however, might not sufficiently protect your assets in the case of a significant accident. For individuals financing or leasing a vehicle, your lender might also require additional protections such as comprehensive or collision coverage.

Tennessee follows an “at-fault” system for auto insurance claims. This means that after a car accident, the driver who is found to be at-fault (negligent or responsible) for causing the crash is legally and financially liable for the damages and injuries suffered by the other parties involved. The at-fault driver’s insurance company is responsible for paying claims up to the limits of their liability coverage. If the at-fault driver’s insurance limits are insufficient to cover all damages, the injured parties may be able to seek additional compensation from their own uninsured/underinsured motorist coverage or even sue the at-fault driver personally.

In most states, including Tennessee, motorists convicted of serious traffic violations like a DUI or driving uninsured might be required to obtain an SR-22 form. This can be obtained through your current insurer, who then forwards the certificate to the Tennessee Department of Safety (DOS). The SR-22 proves you hold minimum insurance requirements in the state. If you no longer own a car, you may have to purchase a non-owner policy in order to file the SR-22.

Although Tennessee’s insurance rates are well below the national average, young drivers, drivers with poor credit, and those with a checkered driving record will still need to shop around to limit the cost of their premiums. USAA, Erie, and Tennessee Farm Bureau tend to offer a good balance between price and service. We recommend comparing quotes from different insurance companies to ensure you are getting the best rates.

We analyze average auto insurance premiums in Tennessee for full and minimum coverage for good drivers with good credit as well as other driver profiles, including those with DUIs, accidents, low credit and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $50,000 per accident
• Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
• Comprehensive and collision: $500 deductible